Entrepreneurship Development: Meaning, Objective, Challenges

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Entrepreneurship development is concerned with the study of entrepreneurship behavior. the dynamics of business setup, development, and expansion of the business. Here in this article, we have explained the ED program and its meaning, definition, objective, models, and advantages.

► What is Entrepreneurship Development?

Entrepreneurship Development is a process of improving the skills as well as the knowledge of the entrepreneurs.

Entrepreneurship dev. can be done through various methods such as classroom sessions or training programs specially designed to increase entrepreneurship acumen.

◉ Entrepreneurship Development Meaning

Entrepreneurship development, in short E.D, means a process of enhancing entrepreneurship skills and knowledge through structured training and institution-building programs.

Definition of Entrepreneurship Dev.

Entrepreneurship Dev. is the process of developing the infrastructure of public and private policies and practices that foster and support entrepreneurship.

Entrepreneurship Development could be defined as a process of enhancing the capacity to develop, manage and organize a business venture while keeping in mind the risk associated with it.

► Concept of ED

This concept of ED is all about enlarging the base of entrepreneurs in order to hasten the pace at which new ventures are created.

ED accelerates employment generation and economic development within the country.

Must Read :What is Entrepreneurship?

► Objectives of Entrepreneurship Development

  • Develop and strengthen entrepreneurial traits
  • Employment Generation
  • Boosting industrial development
  • Developing urbanization
  • Select and formulate the project
  • Learning the art of Product development
  • To know the source of help and support for a startup venture
  • Industry Exposer Learning
  • Entrepreneurial incubator culture
  • Fundraising Awareness
  • Sustainability and growth

► Need for Entrepreneurship Development

  • Increase in National production
  • Balanced development in all areas
  • Reinvestment of profit for the welfare of the areas of profit generation
  • The development provides motivation and human resource
  • Entrepreneurial awareness
  • Increase in employment opportunity
  • Increasing productivity
  • Optimum use of local resources
  • Continued innovation in technology and managerial practices
  • Improving international competitiveness

► Characteristics of Entrepreneurship Development

  • Encouraging Entrepreneurship
  • Building Desire for Entrepreneurship
  • Motivating Entrepreneurs
  • Ease of Doing Business
  • Facilitating Human Resource Development
  • Dynamic process
  • Knowledge Centre for Entrepreneurs
  • Mentorship program

► Importance of Entrepreneurship Development

  • Eliminate poverty and unemployment
  • Balance regional development
  • Reducing industrial slums
  • Utilizing locally available resources
  • Refuses social tension
  • Capital Formation Economic Independence

► Phases of ED Programme

  • Initial or Pre-training phase
  • Training or Development phase
  • Post-training or Follow-up phase

Must Read :Entrepreneurship Dev. Syllabus

► Process of Entrepreneurship Dev.

The total time period of Entrepreneurship dev. is over one and a half to two years.

  1. Pre Seminar Awareness
  2. Counseling, Motivation, and Idea Generation
  3. Training
  4. Project Report Preparation & Submission to Bank
  5. Follow-up sanction and disbursement of loans
  6. Mentoring for two years.

► Factors Affecting Entrepreneurship Development

  • Aspiration and Attitude of Entrepreneurs
  • Individual traits
  • Family circumstances
  • Govt Policies, Schemes, and Incentives
  • Social Cultural factors
  • Custom and Traditions
  • Market Competition
  • Business Environment and Industry trends
  • Support system
  • The attitude of Big Entrepreneurs
  • Entrepreneurship courses and training
  • Role of Financial Institutions and Banks

► Entrepreneurship Development Program

Entrepreneurship dev. programs may be defined as a program designed to help a person in strengthening his entrepreneurial motive, and in acquiring the skills and capabilities necessary for playing his entrepreneurial role effectively.

The ED program is designed to identify people who have entrepreneurial spirits and capabilities.

These programs provide immense information to potential entrepreneurs regarding new business ideas, how to set up a new venture, how to prepare project reports, how to fulfill legal formalities, sources of raising finance, etc.

A program that seeks to do all this shall qualify to be called an entrepreneurship dev. program.

► Entrepreneurship Development in India

There are various Government institutions for ED in India. The Entrepreneurship Development Institute of India (EDI) an autonomous body and not-for-profit institution founded in 1983 is sponsored by apex finance institutions namely the IDBI Bank Ltd, IFCI Ltd. ICICI Ltd, and State Bank of India (SBI).

The institute is registered under the societies registration act 1860 and the Public Trust Act 1950. The Government of Gujrat pledged twenty-three acres of land on which stands the majestic and sprawling EDI campus.

Following are the Govt Institutions for ED Programs in India;

  • National Institute for Entrepreneurship and Small Scale Business Development (NIESBUD)
  • Entrepreneurship development Institute of India (EDII)
  • Technical Consultancy Organization (TCO)
  • Indian Investment Centre (IIC)
  • Post Graduate Diploma in Management Business Entrepreneurship (PGDM-BE)
  • Post Graduate Diploma in Management Development Studies (PGDM-DS)
  • Fellow Programme in Management (FPM)

Apart from the above-mentioned institutions, there are various national and state-level institutions that provide assistance to the entrepreneurial development program.

For example;

  • SIDC: State Industrial Development Corporation
  • IDBI: Industrial Development Bank of India
  • ICICI: Industrial Credit and Investment Corporation of India
  • IFCI: Industrial Finance Corporation of India

◉ Problems / Challenges of Entrepreneurship Dev.

  • No specific policy at the national level
  • Nonavailability of infrastructural facilities
  • Duration of ED programs
  • Lack of commitment
  • Selection of wrong trainees
  • Improper methodologies
  • The lukewarm attitude of financial institutions
  • Less availability of competent staff